What’s the money situation like in your household? Do you set a monthly budget together as a family? Do your kids know how much groceries cost every week? Do your kids know how hard you work to put a roof over their heads and clothes on their backs? The answer to all of these questions is probably no and that’s OK, but it should change. Now is the time that you should talk to your kids about money.
Talking about money isn’t taboo; it’s important for kids to grow up knowing that money doesn’t grow on trees. If you hide family finances from them how will they ever learn how to manage money responsibly?
Think back to your early days as a young adult, did you make some money mistakes? I’m sure we all did. Wouldn’t it be nice if you could help elevate that stress for your kids?
Here are four reasons to talk to your kids about money:
It helps avoid surprises later
Not knowing the value of money can have long term financial repercussions for anyone, especially for young adults who are living on their own for the first time. Learning how to make money, save money and spend money wisely (on a budget) as a teenager (or even younger) can help your children grow up to have an easier life.
It can help them avoid racking up thousands of dollars in debt and save for the things they want in life such as a new car, buying a home or taking a vacation.
Manage debt responsibly
Debt sucks. It’s easy to accumulate, but hard to pay off. It’s hard to save and invest your money if you’re trying to pay off debt with high interest charges. Avoiding credit cards is not the answer and we don’t want kids to be afraid of them.
If you talk to your kids about money teach them how to use a credit card responsibly which includes spending within affordable limits and paying off the balance each month. It will help increase their credit score and their financial worthiness.
Pay for school
If your kids want to go to college why should you have to pay the entire bill? Because you’re a great parent, that’s why. Although having tuition and books paid for makes a college student’s life easier, it doesn’t help them learn the value of money.
Working part time during school never hurt nobody and it helps your kid establish work ethics and good financial behavior.
You don’t want to pay for them forever
This is probably the number one reason why you want to talk to your kids about money. Yes you want them to grow up to be financially responsible adults and yes you don’t want them to be burdened by debt. But let’s be honest, you also don’t want to have to pay for them for the rest of your life.
You work hard for your money and you should eventually be able to enjoy it. The way to do that is to stop paying for your kids and start putting you first. Unfortunately as a parent this can’t happen until they learn how to make money and manage money, so get to it and start talking to your kids about money.